Home Buying

Closing Costs / Fees

Fees are a necessary evil when buying a home and there is no way around them unless you know someone who does each and every job and they love you enough to work for nothing!

No Fee Loans or Waived Fees

Good Faith Estimate

How to pay or Avoid fees Associated with Buying a Home


No Fee Loans or Waived Fees
You may hear of lenders ‘waiving’ fees, or ‘no-fee’ loans.  Do not be deceived: almost every first lien mortgage loan is originated, processed, underwritten and closed.  There are lots of people you may never meet who will work on your loan, and they like to get paid.  If you see a loan that has waived or no fees, you can be certain that you are paying an inflated interest rate (to cover the fees).  On a very short term loan, this may be worth doing, but if you are buying a family home that you plan on being in for several years, you will want your interest rate to be as low as possible.


Good Faith Estimate
When you arrange a mortgage with us, we will take the time to talk you through all of your loan disclosures, because we want you to understand the various aspects and implications of your loan.  One of the disclosures: the Good Faith Estimate will show all of the fees incurred with a home purchase.  We will explain what all the fees are and what they are for.  No-one likes paying fees, but when you know what they are for it is easier to realize their value.


How to pay the Fees associated with Buying A Home
When it comes to paying fees, there are some programs where depending on income and assets, you can get a forgivable grant to cover fees.  Not everyone can qualify for this, so they look to the seller to help them pay the fees.  Most sellers will help somewhat but they may not have the funds or inclination to pay them, or at least not all of them.  The next cheapest way is to pay them up front then you won’t pay interest on them, but most folks don’t have the finances to do this, so they opt to have them included into the purchase price and hence into the loan.  If there is really no other option, the fees can be paid by the lender, but you will pay a higher interest rate for the life of the loan.  When you apply for a loan with us, we will ask you about your long term plans and discuss the various options for paying fees so that you can make an informed choice.Top

Copyright ©2012.
Barbara Hansen,
All Rights Reserved
Tel: 208 587 4471
Fax: 208 587 3690



What are they, how to pay or avoid them

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